Business

It's official, I'm calling a banking crisis in Europe. Things didn't go well the last time I did this. Of course, many will say, "But the rating agencies have learned their collective lessons. They would most assuredely warn us if the European banks are close to going bust, right?!!!". Yeah, right! Reference our past research note on so-called trusted parties in private blockchains for banks. Those interested in purchasing the 22 page report on what is likely the first major bank to fall victim to the coming Pan-European Banking Crisis can do so here. All others, feel free to read on...

First it was the Saudis who said they would not cap oil output unless Iran joins the production freeze, which it won't. And now, Bloomberg reports citing APS, that Russia was in on the plot to make the Doha meeting a total and complete farce.

• ALGERIA SAYS DOHA TALKS AIM TO CAP OUTPUT AT JAN. LEVELS: APS
• ALGERIA'S KHEBRI SAYS SOME OIL PRODUCERS REFUSE OUTPUT CUT: APS
• ALGERIA OIL MINISTER SAYS RUSSIA REFUSED TO CUT OUTPUT: APS

More details:

First, the facts, courtesy of Bloomberg:

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This is how Forbes laid out the threat of the Q1 earnings collapse just 4 months ago:

Turns out not only was it likely but Q1 earnings are about to plunge the most in 8 years, which means that now that the threat has materialized, it is time for spin. A lot of spin. courtesy of everyone.

First Reuters:

Then MarketWatch:

Business as usual this morning. In order to sustain the dream into the US Open, USDJPY was ramped - running stops to 108.50 to ensure the smoke-and-mirrors gains on another Italian bank bailout rumor enable just the right amount of reytail traders to get muppeted.

USDJPY completes infamous "stops taken out" formation

— zerohedge (@zerohedge) April 11, 2016

Once the open struck, USDJPY dumped sending Gold soaring back above $1255.

This morning's 160 point spike in Dow Futures - out of nowhere - was predicated on hopes of an Italian bank bailout. While this may seem like an odd reason to "buy buy buy" US equities, in the new normal, it really is not.. and when put in context, the 'bounce' in EU banks should do more to scare than soften investors' concerns...

Remember the last time headlines hit that Italian banks were to be bailed out (by ECB buying that time)...

Oh and Deutsche Bank hardly blinked...

Still think this is sustainable...